CHAPTER 6: INTELLECTUAL PROPERTY
1. The Fair Use Doctrine is a defense often employed by the defendant in trademark infringement cases.
a. True
b. False
2. Formulas, inventions, and processes are not considered forms of intellectual property.
a. True
b. False
3. Industrial espionage and competitive intelligence are essentially the same.
a. True
b. False
4. Copyright infringement is the act of stealing someone’s ideas or words and passing them off as one’s own.
a. True
b. False
5. The Lanham Act (also known as the Trademark Act) defines the use of a trademark, the process for obtaining a
trademark, and the penalties associated with trademark infringement.
a. True
b. False
6. Software, video games, multimedia works, and Web pages can all be copyrighted.
a. True
b. False
7. Defining and controlling the appropriate level of access to intellectual property are complex tasks.
a. True
b. False
8. The fair use doctrine denies portions of patented materials to be used without permission under any circumstance.
a. True
b. False
Chapter 6: Intellectual Property
9. Two software manufacturers could conceivably develop separate programs that perform the same functions in a
nearly identical manner without infringing each other’s copyrights.
a. True
b. False
10. The Prioritizing Resources and Organization for Intellectual Property (PRO–IP) Act of 2008 increased
trademark and copyright enforcement and substantially increased penalties for infringement.
a. True
b. False
a. True
b. False
Property Rights to establish the minimum levels of protection that each government must provide to the intellectual
property of all WTO members.
a. True
b. False
WIPO treaties.
a. True
b. False
14. A trademark permits its owner to exclude the public from making, using, or selling a protected invention, and
allows for legal action against violators.
a. True
b. False
Chapter 6: Intellectual Property
15. Cross-licensing agreements between organizations allow each party to sue the other over patent infringements.
a. True
b. False
16. The main body of law that governs patents is contained in Title 35 of the U.S. Code.
a. True
b. False
17. The term of copyright has been extended several times from its original limit of 25 years to 35 years.
a. True
b. False
18. A trademark is business information that represents something of economic value, has required effort or cost to
develop, has some degree of uniqueness or novelty, is generally unknown to the public, and is kept confidential.
a. True
b. False
19. The World Intellectual Property Organization (WIPO) Copyright Treaty of 1996 eliminated many of the original
copyright protections for electronic media.
a. True
b. False
20. A copyright is the exclusive right to distribute, display, perform, or reproduce an original work in copies or to prepare
derivative works based on the work.
a. True
b. False
21. Because organizations can risk losing trade secrets when key employees leave, they often try to prohibit employees
from revealing secrets by adding non-compete clauses to employment contracts.
a. True
b. False
Chapter 6: Intellectual Property
22. Reverse engineering can only be applied to computer hardware, not computer software.
a. True
b. False
23. Using reverse engineering, a developer can use the code of the current database programming language to recover
the design of the information system application.
a. True
b. False
24. Open source code is any program whose source code is made available for use or modification, as users or
other developers see fit.
a. True
b. False
25. A common use of open source software is to move data from one application to another and to extract, transform,
and load business data into large databases.
a. True
b. False
26. Competitive intelligence involves the gathering and analysis of the trade secrets of your competitors.
a. True
b. False
27. Competitive intelligence analysts must be authorized to take unethical or illegal actions in the normal course of their
job.
a. True
b. False
28. The first state to enact the Uniform Trade Secrets Act was Illinois.
a. True
b. False
Chapter 6: Intellectual Property
29. In the early days of the Web, many cybersquatters registered domain names for famous trademarks or company
names to which they had no connection.
a. True
b. False
30. Programs with open source code can be adapted to meet new needs, and bugs can be rapidly identified and fixed.
a. True
b. False
31. The Digital Millennium Copyright Act (DMCA) was signed into law in .
a. 1992 b. 1998
c. 1990 d. 1996
32. Patent law protects .
a. art and film
b. information critical to an organization’s success
c. books
d. inventions
33. The of 1996 imposes penalties of up to $10 million and 15 years in prison for the theft of trade secrets.
a. Prioritizing Resources and Organization for
Intellectual Property (PRO-IP) Act
b. The Economic Espionage Act (EEA)
c. Agreement on Trade-Related Aspects of Intellectual
Property Rights
d. The Lanham Act
34. is the process of taking something apart in order to understand it, build a copy of it, or improve it.
a. Plagiarism b. Patent infringement
c. Reverse engineering d. Decompiling
Chapter 6: Intellectual Property
35. is the existing body of knowledge available to a person of ordinary skill in the art.
a. Prior experience b. Known facts
c. Body of practice d. Prior art
36. The U.S. Supreme Court has ruled that there are classes of items that cannot be patented.
a. two b. three
c. four d. five
37. Copyright and patent protection was established through .
a. the Bill of Rights b. the U.S. Federal Codes and Statutes
c. the U.S. Constitution d. various state laws
38. A patent is a grant of a property right issued by the to an inventor.
a. USPS b. USPTO
c. FTC d. SEC
39. The concept that an idea cannot be copyrighted but the of an idea can be is key to understanding
copyright protection.
a. expression b. summary
c. variation d. illustration
40. Motion picture companies supported the development and worldwide licensing of the , which enables a
DVD player or a computer drive to decrypt, unscramble, and play back motion pictures on DVDs, but not copy
them.
a. Time Warner Cable system b. RIAA
c. DeCSS d. Content Scramble System (CSS)
41. The of 2008 increased trademark and copyright enforcement and substantially increased penalties for
infringement.
a. Digital Millennium Copyright Act (DMCA) b. General Agreement on Tariffs and Trade
c. Agreement on Trade-Related Aspects of
Intellectual Property Rights d. Prioritizing Resources and Organization for Intellectual
Property (PRO-IP) Act
Chapter 6: Intellectual Property
42. The established the minimum levels of protection that each country must provide to all WTO members.
a. World Trade Organization (WTO) b. Digital Millennium Copyright Act (DMCA)
c. The World Intellectual Property
Organization (WIPO) d. Agreement on Trade-Related Aspects of Intellectual
Property Rights (TRIPS)
43. A(n) can read the machine language of a software program and produce the source code.
a. compiler b. open source decoder
c. re–engineering device d. decompiler
44. A(n) prohibits a departing employee from working for any competitors for a period of time.
a. noncompete agreement b. license agreement
c. nondisclosure agreement d. union agreement
and software that can be used for copyright infringement as well as for legitimate non-infringing use.
a. TRIPS Agreement b. Digital Millennium Copyright Act (DMCA)
c. WIPO Copyright
Treaty d. Prioritizing Resources and Organization for Intellectual Property (PRO-IP)
Act
46. allows portions of copyrighted materials to be used without permission under certain circumstances.
a. Plagiarism b. Copyright infringement
c. Fair use doctrine d. Use of prior art
47. One of the tests that an invention must pass to be eligible for a patent is that it must .
a. be a machine
b. not be economical to produce
c. be capable of providing economic benefit
d. be obvious to a person having ordinary skill in the same field
Chapter 6: Intellectual Property
48. The enacted in 1999, allows trademark owners to challenge foreign cybersquatters who might otherwise be
beyond the jurisdiction of U.S. courts.
a. ACPA b. PRO-IP Act
c. Economic Espionage Act d. CAN-SPAM Act
49. was a legislator and former singer and entertainer who co-sponsored the Copyright Term Extension Act.
a. Frank Sinatra b. Sonny Bono
c. Dean Martin d. Sammy Davis Jr.
50. The requires member governments to ensure that intellectual property rights can be enforced under their
laws and that penalties for infringement are tough enough to deter further violations.
a. TRIPS agreement b. DMCA
c. PRO-IP Act d. WIPO Copyright Agreement
51. A claims as its invention some feature or process embodied in instructions executed by a computer.
a. trade secret b. software patent
c. cross-licensing agreement d. patent infringement
52. The redistribution of a program code with no copyright as a proprietary software can be avoided by using a(n)
_____.
a. nondisclosure clause b. open source license
c. patent protection d. copyright term
53. Firefox and OpenOffice are all examples of .
a. Web browsers
b. utility software
c. products developed through re-engineering
d. open source software
Chapter 6: Intellectual Property
54. One key advantage that trade secret law has over the use of patents and copyrights in protecting companies from
losing control of their intellectual property is .
a. the time limitation for a trade secret is longer than for patents and copyrights
b. no royalties must be paid on trade secrets
c. trade secrets can become part of the prior art and be used to protect patents and copyrights
d. there is no need to file an application or disclose a trade secret to gain protection
55. A(n) is a logo, package design, phrase, sound, or word that enables a consumer to differentiate one company’s
products from another’s.
a. trade secret b. watermark
c. trademark d. earmark
56. Cybersquatters .
a. frequently launch denial–of-service attacks against popular Web sites
b. register domain names for famous trademarks or company names to which they have no connection
c. remain connected to popular Web sites for extremely long periods of time making it difficult for others to
obtain service
d. employ phishing tactics using the domain names of popular Web sites
57. The courts have ruled in favor of using reverse engineering to .
a. allow the domination of a particular software market by a single manufacturer
b. provide access to protected elements of an original work
c. circumvent restrictive trade secrets
d. enable interoperability
58. Under the , the U.S. patent system changed from a “firsttoinvent” to a “firstinventortofile” system.
a. Economic Espionage Act b. Lanham Act
c. Uniform Trade Secrets Act d. Leahy-Smith America Invents Act
a. prior art b. industrial espionage
c. competitive intelligence d. trade secrets
Chapter 6: Intellectual Property
60. is the act of stealing someone’s ideas or words and passing them off as one’s own.
a. Plagiarism b. Cybersquatting
c. Reverse engineering d. Patent trolling
61. The was drafted in the 1970s to bring uniformity to all the United States in the area of trade secret law.
62. A(n) is business information that represents something of economic value, has required effort or cost to
develop, has some degree of uniqueness or novelty, is generally unknown to the public, and is kept confidential.
63. is the use of illegal means to obtain business information not available to the general public.
64. Trade secret law protects only against the of trade secrets.
65. According to the Copyright Term Extension Act signed into law in 1998, for works created after January 1, 1978,
copyright protection endures for the life of the author plus .
67. Together, copyright, patent, and legislation form a complex body of law that addresses the ownership of
intellectual property.
68. One frequent use of
for software is to modify an application that ran on one vendor’s database so that it
can run on another’s.
Chapter 6: Intellectual Property
69. The created the World Trade Organization.
70. Works that have not been fixed in a tangible form of expression and those that consist entirely of common
information that contains no original authorship are not eligible for .
71. The prohibits circumvention of any technical measures put in place to protect copyrighted works.
73. Unlike a copyright, a patent prevents as well as copying.
from revealing secrets by adding to employment contracts.
75. Merchants seeking trademark protection apply to the if they are using the mark in interstate commerce or if
they can demonstrate a true intent to do so.
76. Copyright and patent protection was established through the , which specifies that Congress shall have the
power “to promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors
the exclusive Rights to their respective Writings and Discoveries.”
77. The main tactic organizations use to circumvent cybersquatting is to protect a trademark by registering numerous
_____.
78. A software developer could make a program simply by putting it into the public domain with no copyright,
allowing others to revise the original code.
Chapter 6: Intellectual Property
79. is a violation of the rights secured by the owner of a copyright.
80. Under the Act, trademark holders can seek civil damages of up to $100,000 from cybersquatters that register
their trade names or similar-sounding names as domain names.
81. guarantees developers the rights to their works for a certain amount of time.
82. To obtain a U.S. , an application must be filed with the USPTO according to strict requirements.
83. , a software product developed by California-based iParadigms, supports 15 languages and is used by over
10,000 educational institutions around the world.
84. A(n) can be used to reveal a competitor’s program code, which can then be used to develop a new program
that either duplicates the original or interfaces with the program.
85. is a term used to describe works of the mind such as art, books, inventions, music, and processes that are
distinct and owned or created by a single person or group.
86. What conditions must be met for a defendant to successfully use the nominative fair use defense?
87. State the background and purpose of the Agreement on Trade-Related Aspects of Intellectual Property Rights.
Chapter 6: Intellectual Property
88. What is the Digital Millennium Copyright Act (DMCA)?
89. Identify what types of work are eligible to be copyrighted.
Chapter 6: Intellectual Property
90. Discuss the uses of cross-licensing agreements by large software manufacturers and how their use can place
smaller companies at a disadvantage.